Gabungan AQRS Bhd‘s wholly-owned subsidiary Nusvista Development Sdn Bhd is selling its leasehold land in Mukim Sungai Buloh, Petaling Jaya to Gadang Construction Sdn Bhd for RM55.69 million cash. The site, located adjacent to PJ Trade Centre, is previously called The Altium, an office project undertaken by Gabungan AQRS. It is believed that the project has been aborted

The land size measures 10,779 sq m, equivalent to 2.66 acres or 116,024.19 sq ft. At a price tag of RM55.69 million, this means that Gadang Construction is buying the land at RM479.99 per sq ft.

Gabungan AQRS said the move to sell the land is part of its ongoing monetisation programme to raise funds. Gabungan AQRS said the proceeds from the sale of the land may be used to repay bank borrowings, which is part of its de-gearing exercise to strengthen its financial footing. It also said the proceeds may be used as working capital to fund its construction works. Gabungan AQRS currently has an order book of around RM1.7 billion. The transaction is expected to complete by the third quarter of its financial year ending Sept 30, 2017 (FY2017).

Gabungan AQRS acquired the 99-year leasehold land in November 2009, with original cost of investment of RM38.29 million (RM331 psf). The leasehold period will expire in another 91 years on May 13, 2108. Gabungan AQRS expects the sales of the land to yield a gain RM11.66 million, net of tax.

Meanwhile, Gabungan AQRS also noted that it has plans to dispose of 19.13 acres of leasehold land in Sepang to government-owned PR1MA Corp, which it expects to complete by the end of the first quarter ending March 31, 2017. At the same time, Gabungan AQRS also said it is still looking for a purchaser for 5.16 acres of land in Puchong, Selangor.